Ordinary people

IndusInd, a bank, has agreed to buy Bharat Financial Inclusion in an all-share deal valuing the poster child of niche lending at $2.4 bln. The 11 pct premium is small but fair given concerns over the long-term sustainability of independent pure-play lenders to the poor.

Context News

The bank will swap 639 of its shares for every 1,000 shares in Bharat Financial, the companies said in a joint statement. The deal values the target at an 11.4 percent premium to the stock’s closing price on Friday.

The Economic Times first reported in February that the two groups were in talks. IndusInd, which is backed by the Hinduja Group, has a market capitalisation of $16 billion.